SUV Insurance Costs

SUV owners pay more for auto insurance. SUVs have average insurance costs 10-20% higher than a typical passenger car. This may not seem logical, as SUVs tend to better protect drivers and passengers in an accident. However, there are a variety of factors that contribute to the added insurance expense for SUV owners.

Because SUVs are larger than your typical passenger car, they tend to cause more property and bodily injury damage when involved in an accident. Physics indicate that a 1,800-pound Smart car would not fare well in an accident against a 5,600-pound Chevrolet Suburban. Despite safety advances in recent years, SUVs are more likely to be involved in roll over accidents, which can be very costly in terms of property damage and bodily injury claims for insurance companies.

SUVs have also become more popular targets for thieves. The styling, comfort, and options such as large chrome wheels that attract customers also attract car thieves. In fact in 2007, according to the Highway Data Loss Institute, the Cadillac Escalade ESV was the most stolen vehicle. The 2007 Escalade has an insurance claim frequency of about 15 per 1,000 insured vehicles. The average amount of loss paid per claim for an Escalade is over $13,000, and it was one of the most stolen vehicles on the road over the past decade. As a result, Cadillac Escalade owners pay more for insurance.

With new SUVs costing on average more than $30,000, the replacement cost of a stolen SUV can be very expensive to insurance companies. Repairs for an SUV also tend to be more expensive than for cars. Parts tend to more expensive adding to costs.

Insurance companies compensate for these extra costs by charging higher premiums for SUV owners. However, there are ways SUV owners can save on insurance. Prices can vary hundreds of dollars per year between companies for SUV owners. By getting an auto insurance quotes comparison, SUV owners can compare the rates for different insurance companies and save on their policy.

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